INFORMATION TECHNOLOGY

CHAPTER-1 INTRODUCTION TO INFORMATION TECHNOLOGY

Introduction Information and Communication Technologies Future A. PROJECTS Microsoft Theories and practices Technology in the Classroom

CHAPTER-2 OUTLINE OF COMMUNICATION

Introduction What is an IT Department? A. Management Control and Information Management B. Valuation of IT Investments Multinationals in India Information Technology Management Goals C. Top Ten List of Information Technology Management

CHAPTER-3 MATERIALS MANAGEMENT

A. Introduction B. Scope Information Technology Advantages C. Software Development and Marketing D. Human Resource Development E. Information Technology Enabled Services

CHAPTER-1 INTRODUCTION TO INFORMATION TECHNOLOGY Introduction

Information technology (IT), as defined by the Information Technology Association of America (ITAA), is "the study, design, development, implementation, support or management of computerbased information systems, particularly software applications and computer hardware."[1] IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information. Today, the term information technology has ballooned to encompass many aspects of computing and technology, and the term has become very recognizable. The information technology umbrella can be quite large, covering many fields. IT professionals perform a variety of duties that range from installing applications to designing complex computer networks and information databases. A few of the duties that IT professionals perform may include data management, networking, engineering computer hardware, database and software design, as well as the management and administration of entire systems. When computer and communications technologies are combined, the result is information technology, or "InfoTech". Information Technology (IT) is a general term that describes any technology that helps to produce, manipulate, store, communicate, and/or disseminate information. Presumably, when speaking of Information Technology (IT) as a whole, it is noted that the use of computers and information are associated. Hasan Kanjee of UofT stated that Information Technology is a vital part of business thus will continue to grow in the future The term Information Technology (IT) is sometimes said to have been coined by Jim Domsic of Michigan in November 1981. Domsic, who worked as a computer manager for an automotive related industry, is supposed to have created the term to modernize the outdated phrase "data processing". The Oxford English Dictionary, however, in defining information technology as "the branch of technology concerned with the dissemination, processing, and storage of information, esp. by means of computers" provides an illustrative quote from the year 1958 (Leavitt & Whisler in Harvard Business Rev. XXXVI. 41/1 "The new technology does not yet have a single established name. We shall call it information technology.") that predates the so-far unsubstantiated Domsic coinage. In recent years ABET and the ACM have collaborated to form accreditation and curriculum standards for degrees in Information Technology as a distinct field of study separate from both Computer Science and Information Systems. SIGITE is the ACM working group for defining these standards.

Information and Communication Technologies

Information and Communications Technology - or technologies (ICT) is an umbrella term that includes all technologies for the manipulation and communication of information. The term is sometimes used in preference to Information Technology (IT), particularly in two communities: education and government. In the common usage it is often assumed that ICT is synonymous with IT; ICT in fact encompasses any medium to record information (magnetic disk/tape, optical disks (CD/DVD), flash memory etc. and arguably also paper records); technology for broadcasting information - radio, television; and technology for communicating through voice and sound or images

- microphone, camera, loudspeaker, telephone to cellular phones. It includes the wide variety of computing hardware (PCs, servers, mainframes, networked storage), the rapidly developing personal hardware market comprising mobile phones, personal devices, MP3 players, and much more; the full gamut of application software from the smallest home-developed spreadsheet to the largest enterprise packages and online software services; and the hardware and software needed to operate networks for transmission of information, again ranging from a home network to the largest global private networks operated by major commercial enterprises and, of course, the Internet. Thus, "ICT" makes more explicit that technologies such as broadcasting and wireless mobile telecommunications are included. It should be noted that "ICT" by this English definition is different in nuance and scope than under "ICT" in Japanese, which is more technical and narrow in scope. ICT capabilities vary widely from the sophistication of major western economies to lesser provision in the developing world. But the latter are catching up fast, often leapfrogging older generations of technology and developing new solutions that match their specific needs. The expression "information and communication technologies" cannot refer only to contemporary automated technological artifacts. Paper-based writing, being itself a technology (Ong, 1988: Chapter 4), can also be included in such ontological category, as can pre-digital means of generating, transmitting and archiving sonic utterances. The common usage of the term, as stated without further investigation, does not warrant its encyclopedic mention.

Future
The ICT may not survive in its present form for long. Sooner than later developing countries would get over the PC mania prevalent now in the developed world, unless there is a remarkable change in the economy of owning a PC. Any technology that requires the masses to own a PC, in its present form, to access information is unlikely to be successful in the foreseeable future. Possibilities appear to exist, however, in the mobile phone technology, which is fast becoming very affordable by the masses, is voice based and can be integrated with the Information Technology at the server end of a computer network. For example, in the field of education [1] people can ask question through a mobile phone, a database of answers to such questions can be generated using the technologies used currently in Wikipedia and call centers and the text in these databases could be converted into voice, by developing text to voice technologies in the various languages. The person seeking information can be informed when the answer is available and better answers sought based on his/her feedback. The emerging 3G and 4G mobile phone technologies can indeed facilitate such developments. An alternative technology could be to integrate the mobile phone with the television screen, so that visual information can be viewed easily. Similarly, there is a possibility for developing interactive radio, on the lines of interactive TV. Information and Communication Technologies for Development Information and Communication Technologies for Development (ICT4D) is a general term referring to the application of Information and Communication Technologies (ICTs) within the field of socioeconomic development. ICT4D concerns itself directly with overcoming the barriers of the digital divide. ICTs can be applied either in the direct sense, where their use directly benefits the disadvantaged population in some manner, or in an indirect sense, where the ICTs assist aid organizations or non-governmental organizations or governments or businesses in order to improve socio-economic conditions. In many impoverished regions of the world, legislative and political measures are required to facilitate or enable application of ICTs, especially with respect to monopolistic communications structures and censorship laws.

ICT4D can be interpreted as dealing with disadvantaged populations anywhere in the world, but it is more typically associated with applications in developing countries. It is becoming recognized as an interdisciplinary research field as can be noted by the number of conferences, workshops and publications in the field. Such research have been spurred on in part by the need for scientifically validated benchmarks and results, which can be used to measure the efficacy of current projects. Many international development agencies recognize the importance of ICT4D. For example the World Bank's GICT section has a dedicated team of some 200 staff working on these issues. The dominant terminology used in this field is "ICT4D". Alternatives include ICTD and "development informatics".

PROJECTS
ICT4D initiatives and projects may be designed and implemented by international institutions, private companies (e.g. Intel's Classmate), governments (e.g. e-Mexico initiative), non-governmental organizations (e.g. International Institute for Communication and Development), or virtual organizations (e.g. One Laptop per Child). ICT4D projects address one or more of the following issues
I.

II.

III.

IV. V.

Infrastructure, providing suitable computer hardware, operating systems, software, and connectivity to the internet. These would include the affordability of software and hardware, the ability to share software (as echoed in the Free Software movement), and the ability to sustainably connect to the internet. Capacity building and training in ICT, installing, maintaining, and developing hardware and software, digital literacy (technological literacy and informational literacy) and eAwareness. Digital content and services, e-services (e-learning, e-health, e-business/e-commerce), including concerns related to local-language solutions in computing, and the Open Access agenda. Regulation of the ICT Sector and digital rights, Universal Access vs. monopolistic structures, Intellectual Property Rights, privacy, security, and digital identity Ethics and Social Contexts

PROBLEMS Projects which deploy technologies in underdeveloped areas face well-known problems concerning crime, problems of adjustment to the social context, and also possibly infrastructural problems. Projects in marginalized rural areas face the most significant hurdles. Since people in marginalized rural areas are at the very bottom of the pyramid, it has been postulated that they stand to benefit the most from ICTs. However introducing ICTs in these areas is also most costly, as the following barriers exist: i. ii. III. iv. V.
VI.

Lack of Infrastructure: no power, no running water, bad roads Lack of Health Services: diseases like HIV, TB, malaria are more common. Lack of Employment: there are practically no jobs in marginalized rural areas. Hunger: hungry users have problems concentrating. Illiteracy: Text user interfaces do not work very well innovative Human Computer Interfaces (see Human Computer Interaction) are required. Social Contexts: the potential users living in rural marginalized areas often cannot easily see the point of ICTs, because of social context and also because of the impediments of hunger, disease and illiteracy.

InfoDev's Rural ICT Toolkit analyses the costs and possible profits involved in such a venture and shows that there is more potential in developing areas than many might assume. A fact which the makers of Aryty have not missed Lessons Learned
I.

ii.
III.

iv. v.

What's crucial in making any ICT4D effort successful is effective partnership between four key stakeholders Public sector (governments - from developed nations, developing nations, international bodies, and local governments) Private sector (companies belonging to members of the target audience, multi-national organizations wishing to expand their markets to the 4 billion people under US$2/day, pro-poor or social companies) Informal sector (NGOs, advocacy groups, think tanks) Representation from the target audience

InfoDev have published 6 lessons from an analysis of 17 their pilot programs (see below). These lessons are backed by a variety of examples as well as a list of recommendations, which should be read by everyone starting an ICT4D project. i. ii. Lesson 1: Involve target groups in project design and monitoring. Lesson 2: When choosing the technology for a poverty intervention project, pay particular attention to infrastructure requirements, local availability, training requirements, and technical challenges. Simpler technology often produces better results. Lesson 3: Existing technologiesparticularly the telephone, radio, and televisioncan often convey information less expensively, in local languages, and to larger numbers of people than can newer technologies. In some cases, the former can enhance the capacity of the latter. Lesson 4: ICT projects that reach out to rural areas might contribute more to the MDGs than projects based in urban areas. Lesson 5: Financial sustainability is a challenge for ICT-for-development initiatives. Lesson 6: Projects that focus on ICT training should include a job placement component. Another insight is that the four most important factors for ICT4D devices are Power, Performance, Portability, and Price: the 4Ps

iii.

iv. v. vi.
VII.

Sustainability and Scalability A growing perspective in the field is also the need to build projects that are sustainable and scalable, rather than focusing on those which must be propped up by huge amounts of external funding and cannot survive for long without it. Also, many so-called "developing" countries, such as India (or other South Asian countries like Sri Lanka, Pakistan, and Bangladesh, as also nations like Malaysia, China, Indonesia, Brazil, South Africa and many others) have proved their skills in IT (information technology). In this context, unless these skills are tapped adequately to build on ICT4D projects, not only will a lot of potential be wasted, but a key indigenous partner in the growth of this sector would be lost. Also there would be unnecessary negative impact on the balance of payments due to imports in both hardware and software. Currently, the main two perspectives coming out of this sector either emphasize the need for external aid to build infrastructure before projects can touch viability, or the need to develop and build on local talent. Both approaches are, of course, not mutually exclusive.

Critics As it has grown in popularity, especially in the international development sector, ICT4D has also increasingly come under criticism. For instance, questions have been raised about whether projects that have been implemented at enormous cost are actually designed to be scalable, or whether these projects make enough of an impact to produce noticeable change. For instance, the Sri Lankan journalist Nalaka Gunawardene argues that thousands of pilot projects have been seeded without regard to generalisability, scalability, and sustainability, implying that these projects will always require external funding to continue running and that their impact is limited. This sentiment echoes a 2003 report by the World Bank. Further criticism of ICT4D concerns the impact of ICTs on traditional cultures and the so-called cultural imperialism which may be spread with ICTs. For example, young males are tempted to spend their recreational time playing violent computer games. It is emphasized that local language content and software seem to be good ways to help soften the impact of ICTs in developing areas. Asia Pacific Development Information Program and International Open Source Network The United Nations -- through its various organizations such as the United Nations Development Program's Asia Pacific Development Information Program (APDIP) has brought out a number of publications. Many are published with shareable content licenses. Specifically in the field of Free/Libre and Open Source Software (FLOSS), the International Open Source Network (IOSN) has been an active player. Undp-Apdip publishes two series of e-primers, namely the e-Primers for the Information Economy, Society and Polity and the e-Primers on Free/Open Source Software. The former series details the concepts, issues and trends surrounding the information economy, society and polity. It intends to raise awareness and help policy makers and planners understand the relevance of information and communications technology (ICT) for development, by explaining technical jargon in simple terms. The latter series serves as an introduction to various aspects and dimensions of FLOSS, with country case-studies. It aims to raise awareness on FLOSS issues and support capacity building efforts.

Microsoft
Microsoft started to offer special developing world Windows version dubbed "Starter edition" since Windows XP, which is cheaper than other editions, has limited application functions, network connectivity and is restricted to low-end hardware. Microsoft sees sub-Saharan Africa as one of the last great computing frontiers and wants to make Windows a fixture there. The company has established a presence in 13 countries and has donated Windows for thousands of school computers and funded programs for entrepreneurs and the youth and has used aggressive business tactics aimed at Linux, which is its biggest threat in the region. The company also makes a kind of ICT4D service with its "Unlimited Potential" program Information and communication technologies in education Information and communication technologies in education deal with the use of Information and Communication Technologies (ICTs) within educational technology. In the United Kingdom, Information and Communication Technology is a subject in [education], and a part of the National Curriculum. Other countries, such as the Philippines, also have ICT as an educational subject. In

South Australia, ICT is not a subject until the final two years of schooling, and in Norway ICT is a course you can select for your second year of upper secondary school. From pre-school to Year 10 ICT is interwoven throughout the curriculum as part of the Essential Learning of Communication. The ICT programme in the United Kingdom is co-ordinated by Becta. A major current initiative is the Curriculum Online scheme which is aimed to accelerate the uptake of technology amongst schools. Becta took over the running of this scheme from the Department for Education and Skills in 2005. Becta works closely with the Joint Information Systems Committee to develop strategy. ICT has also enabled learning through multiple intelligence as ICT has introduced learning through simulation games; this enables active learning through all senses. Many schools have specialist school status in technology and, more recently, in maths and computing, and these schools champion the use of ICT to enhance teaching and learning. DA-IICT was the first university in India to offer an undergraduate engineering degree in ICT - Bachelor of Technology (ICT). Information and Communications Technology - or technologies (ICT) is an umbrella term that includes all technologies for the manipulation and communication of information. The term is sometimes used in preference to Information Technology (IT), particularly in two communities: education and government. In the common usage it is often assumed that ICT is synonymous with IT; ICT in fact encompasses any medium to record information (magnetic disk/tape, optical disks (CD/DVD), flash memory etc. and arguably also paper records); technology for broadcasting information - radio, television; and technology for communicating through voice and sound or images - microphone, camera, loudspeaker, telephone to cellular phones. It includes the wide variety of computing hardware (PCs, servers, mainframes, networked storage), the rapidly developing personal hardware market comprising mobile phones, personal devices, MP3 players, and much more; the full gamut of application software from the smallest home-developed spreadsheet to the largest enterprise packages and online software services; and the hardware and software needed to operate networks for transmission of information, again ranging from a home network to the largest global private networks operated by major commercial enterprises and, of course, the Internet. Thus, "ICT" makes more explicit that technologies such as broadcasting and wireless mobile telecommunications are included. It should be noted that "ICT" by this English definition is different in nuance and scope than under "ICT" in Japanese, which is more technical and narrow in scope. ICT capabilities vary widely from the sophistication of major western economies to lesser provision in the developing world. But the latter are catching up fast, often leapfrogging older generations of technology and developing new solutions that match their specific needs. Coherence Problems The expression "information and communication technologies" cannot refer only to contemporary automated technological artefacts. Paper-based writing, being itself a technology (Ong, 1988: Chapter 4), can also be included in such ontological category, as can pre-digital means of generating, transmitting and archiving sonic utterances. The common usage of the term, as stated without further investigation, does not warrant its encyclopaedic mention. Future The ICT may not survive in its present form for long. Sooner than later developing countries would get over the PC mania prevalent now in the developed world, unless there is a remarkable change in the economy of owning a PC. Any technology that requires the masses to own a PC, in its present form, to access information is unlikely to be successful in the foreseeable future. Possibilities appear to exist, however, in the mobile phone technology, which is fast becoming very affordable by

the masses, is voice based and can be integrated with the Information Technology at the server end of a computer network. For example, in the field of education [1] people can ask question through a mobile phone, a database of answers to such questions can be generated using the technologies used currently in Wikipedia and call centers and the text in these databases could be converted into voice, by developing text to voice technologies in the various languages. The person seeking information can be informed when the answer is available and better answers sought based on his/her feedback. The emerging 3G and 4G mobile phone technologies can indeed facilitate such developments. An alternative technology could be to integrate the mobile phone with the television screen, so that visual information can be viewed easily. Similarly, there is a possibility for developing interactive radio, on the lines of interactive TV. Educational technology (also called learning technology) is the study and ethical practice of facilitating learning and improving performance by creating, using and managing appropriate technological processes and resources."[1] The term educational technology is often associated with, and encompasses, instructional theory and learning theory. While instructional technology covers the processes and systems of learning and instruction, educational technology includes other systems used in the process of developing human capability. Educational Technology includes, but is not limited to, software, hardware, as well as Internet applications and activities. Perspectives and meaning Educational technology is most simply and comfortably defined as an array of tools that might prove helpful in advancing student learning. Educational Technology relies on a broad definition of the word "technology". Technology can refer to material objects of use to humanity, such as machines or hardware, but it can also encompass broader themes, including systems, methods of organization, and techniques. Some modern tools include but are not limited to overhead projectors, laptop computers, and calculators. Newer tools such as "smart phones" and games (both online and offline) are beginning to draw serious attention for their learning potential. Those who employ educational technologies to explore ideas and communicate meaning are learners or teachers. Consider the Handbook of Human Performance Technology. The word technology for the sister fields of Educational and Human Performance Technology means "applied science." In other words, any valid and reliable process or procedure that is derived from basic research using the "scientific method" is considered a "technology." Educational or Human Performance Technology may be based purely on algorithmic or heuristic processes, but neither necessarily implies physical technology. The word technology comes from the Greek "Techne" which means craft or art. Another word "technique", with the same origin, also may be used when considering the field Educational technology. So Educational technology may be extended to include the techniques of the educator] A classic example of an Educational Psychology text is Bloom's 1956 book, Taxonomy of Educational Objectives. Bloom's taxonomy is helpful when designing learning activities to keep in mind what is expected of--and what are the learning goals for-- learners. However, Bloom's work does not explicitly deal with educational technology per se and is more concerned with pedagogical strategies. According to some, an Educational Technologist is someone who transforms basic educational and psychological research into an evidence-based applied science (or a technology) of learning or instruction. Educational Technologists typically have a graduate degree (Master's, Doctorate, Ph.D., or D.Phil.) in a field related to educational psychology, educational media, experimental psychology, cognitive psychology or, more purely, in the fields of Educational, Instructional or Human Performance Technology or Instructional (Systems) Design. But few of those listed below as theorists would ever use the term "educational technologist" as a term to describe themselves, preferring terms

like "educator] the transformation of educational technology from a cottage industry to a profession is discussed by Shurville, Browne, and Whitaker.

Theories and practices

Three main theoretical schools or philosophical frameworks have been present in the educational technology literature. These are Behaviorism, Cognitivism and Constructivism. Each of these schools of thought are still present in today's literature but have evolved as the Psychology literature has evolved. Behaviorism This theoretical framework was developed in the early 20th century with the animal learning experiments of Ivan Pavlov, Edward Thorndike, Edward C. Tolman, Clark L. Hull, B.F. Skinner and many others. Many psychologists used these theories to describe and experiment with human learning. While still very useful this philosophy of learning has lost favor with many educators. Skinner's Contributions B.F. Skinner wrote extensively on improvements of teaching based on his functional analysis of Verbal Behavior,[7] and wrote "The Technology of Teaching",[8] an attempt to dispel the myths underlying contemporary education, as well as promote his system he called programmed instruction. Ogden Lindsley also developed the Celeration learning system similarly based on behavior analysis but quite different from Keller's and Skinner's models. Cognitivism Cognitive science has changed how educators view learning. Since the very early beginning of the Cognitive Revolution of the 1960s and 1970s, learning theory has undergone a great deal of change. Much of the empirical framework of Behaviorism was retained even though a new paradigm had begun. Cognitive theories look beyond behavior to explain brain-based learning. Cognitivists consider how human memory works to promote learning. After memory theories like the Atkinson-Shiffrin memory model and Baddeley's Working memory model were established as a theoretical framework in Cognitive Psychology, new cognitive frameworks of learning began to emerge during the 1970s, 80s, and 90s. It is important to note that Computer Science and Information Technology have had a major influence on Cognitive Science theory. The Cognitive concepts of working memory (formerly known as short term memory) and long term memory have been facilitated by research and technology from the field of Computer Science. Another major influence on the field of Cognitive Science is Noam Chomsky. Today researchers are concentrating on topics like Cognitive load and Information Processing Theory. Constructivism Constructivism is a learning theory or educational philosophy that many educators began to consider in the 1990s. One of the primary tenets of this philosophy is that learners construct their own meaning from new information, as they interact with reality or others with different perspectives. Constructivist learning environments require students to utilize their prior knowledge and experiences to formulate new, related, and/or adaptive concepts in learning. Under this framework the role of the teacher becomes that of a facilitator, providing guidance so that learners can construct their own knowledge. Constructivist educators must make sure that the prior learning experiences are

appropriate and related to the concepts being taught. Jonassen (1997) suggests "well-structured" learning environments are useful for novice learners and that "ill-structured" environments are only useful for more advanced learners. Educators utilizing technology when teaching with a constructivist perspective should choose technologies that reinforce prior learning perhaps in a problem-solving environment. Instructional technique and technologies Problem Based Learning and Inquiry-based learning are active learning educational technologies used to facilitate learning. Technology which includes physical and process applied science can be incorporated into project, problem, inquiry-based learning as they all have a similar educational philosophy. All three are student centered, ideally involving real-world scenarios in which students are actively engaged in critical thinking activities. The process that students are encouraged to employ (as long as it is based on empirical research) is considered to be a technology. Classic examples of technologies used by teachers and Educational Technologists include Bloom's Taxonomy and Instructional Design. Benefits Educational technology is intended to improve education over what it would be without technology. Some of the claimed benefits are listed below: Easy-to-access course materials Instructors can post the course material or important information on a course website, which means students, can study at a time and location they prefer and can obtain the study material very quickly Student motivation Computer-based instruction can give instant feedback to students and explain correct answers. Moreover, computer is patient and non-judgmental, which can give the student motivation to continue learning. According to James Kulik, who studies effectiveness of computers used for instruction, students usually learn more in less time when receiving computer-based instruction and they like classes more and develop more positive attitudes toward computers in computer-based classes Wide participation Learning material can be used for long distance learning and are accessible Improved student writing It is convenient for students to edit their written work on word processors, which in turn improves the quality of their writing. According to some studies, the students are better at critiquing and editing written work that is exchanged over a computer network with students they know Subjects made easier to learn Many different types of educational software are designed and developed to help children or teenagers to learn specific subjects. Examples include pre-school software, computer simulators, and graphics software. A structure that is more amenable to measurement and improvement of outcomes.

Criticism Similarly to learning a new task or trade, there is special training that is involved with adding elements of educational technology to the classroom. Without proper training, teachers and students cannot benefit from devices that will improve the quality of education. Devices are a waste of time and money if teachers are not receiving proper training. Another disadvantage is that if teachers plan on using educational technology, they must come to the classroom prior to start time and set everything up and make sure it is all working. Educational technology and the humanities Research from the Alberta Initiative for School Improvement (AISI) indicates that inquiry and project-based approaches, combined with a focus on curriculum, effectively supports the infusion of educational technologies into the learning and teaching process.

Technology in the Classroom

Computer in the Classroom Having a computer in the classroom is an asset to any teacher. With a computer in the classroom, teachers are able to demonstrate a new lesson, present new material, illustrate how to use new programs, and show new websites. Class Website What better way to display your student's work, then to create a web page designed just for your class. Once a web page is designed, teachers can post homework assignments, student work, famous quotes, trivia games, and so much more. In current day society, children know how to use the computer and navigate their way through a website, so why not give them one where they can be a published author. Wireless Classroom Microphones Noisy classrooms are a daily occurrence, and with the help of microphones, students are able to hear their teachers clearer. Children learn better when they hear the teacher clearly. The benefit for teachers is that they no longer loose their voices at the end of the day.

CHAPTER-2 OUTLINE OF COMMUNICATION Introduction

Communication is the process of generation, transmission, or reception of messages to oneself or another entity, usually via a mutually understood set of signs. The following outline is provided as an overview of and introduction to communication In the broadest sense, information technology refers to both the hardware and software that are used to store, retrieve, and manipulate information. At the lowest level you have the servers with an operating system. Installed on these servers are things like database and web serving software. The servers are connected to each other and to users via a network infrastructure. And the users accessing these servers have their own hardware, operating system, and software tools. Information technology has been defined by the Information Technology Association of America, or the ITAA as being the study, design, development, implementation support and/or management of any computer based information systems. This relates particularly to software applications and computer hardware. Information technology deals with using electronic computers and software to convert, store, protect, process, retrieve with security or transmit any information. What began many years ago as a term that many had no awareness of to a term that has skyrocketed to include several aspects of computing and technology. IT is a wide based term and encompasses many areas. Professionals in information technology may perform a wide variety of tasks that range from installing computer applications to designing widely complex computer networks and information databases. Everything from data management, networking, engineering computer hardware, software design, database design and management and administration of systems is included in the term of information technology. When covering the aspects of IT as a whole, the use of computers and information are typically associated. The history of IT goes back several years. In order to perform the functions associated with the field of technology the modern field will use computers, servers, database management systems and cryptography. It was not very long ago that the field of IT only consisted of a single computer operator who stored data on a magnetic tape and then placed it in storage. Times have changed drastically in the field of technology from its inception several years ago. The field today typically includes a Chief Information Officer and several individuals who work together to achieve their goals. Years ago there was simply a single operator who performed all the tasks related to this form of technology. Today the job outlook for people interested in this field is very good. With data security and server specialists among the highest paid in the field, those with the needed skills and a keen interest in IT stand to earn a substantial annual income. With the increasing concern for data storage and management, along with the security issues that most companies and corporations are facing, a career in IT is an excellent choice for those who possess mathematical and strategic planning skills. Since 1961 the Information Technology Association of America has been working to enhance the interests of US technology and electronics industries. This association provides leadership training in areas relating to business development, public policy, market forecasting and standards of development to a large number of corporations. The ITAA provides a grassroots approach to global networking for companies, market and government from the smallest local level to a global audience. It currently represents more than 16,000 information technological related companies throughout the

world. Based in Washington, DC, the Information Technology Association of American is the only organization of its kind that helps to unite local, state, national and global businesses in the area of technology. While technology today encompasses a wide range of individual focuses, it is becoming increasing clear that the IT field of the future will include many more topics and more demand than ever before. For those interested in becoming part of this rapidly growing field the time is now. Getting in on new developments could prove to be a very exciting and lucrative choice.

What is an IT Department?
The Information Technology (IT) department manages the technology and computer infrastructure that drives an organization's business systems. The IT department is also known as Management Information Systems (MIS or IS) department. The IT department is staffed with technically competent professionals that support the organization in these critical areas: End-user Technical Support Much of an organizations computer processing is performed by end-users using their desktop PC. When these end-users incur a computer problem (unable to logon, printer does not work, etc.), they call the IT department for technical support. Depending on the nature of the problem, the IT department may assist the user over the phone or send a technician to their location. Desktop Management Managing individual desktop computers, laptops and peripherals is a cornerstone of the IT department tasks. Desktop management of individual computers includes: installation of new hardware components or software, software license administration, equipment repair and maintenance. Network Management Making sure that the computer network is always available with safe and secure data is the most important task for the IT department. Not only does this involve the physical installation of cabling throughout the facility, but also the installation and monitoring of the firewall, servers and other equipment to keep the network running at peak efficiency Voice and Data Communications The IT department maintains the telephone and computer systems that allow employees to connect with other employees, customers and suppliers through the use of voice mail, email, faxes, message boards and Internet and intranet web sites. This includes coordinating new requirements with third-party service providers. Business Applications Developing and maintaining the business systems that operate the organization are essential tasks of the IT department. This includes software for financial, manufacturing, sales and distribution systems, as well as general office administration, such as word processing and spreadsheet applications.

Strategic Technology Planning The IT department is responsible for creating and executing a strategic technology plan that keeps the organization up-to-date with technology advances and ensures that equipment and software do not become obsolete. The technology plan also focuses on the requirements needed to support new business growth.

Management Control and Information Management

Introduction Management control and information management is a must in any organization where decentralization exists. Leaders who dont understand fundamentals of control techniques and their underlying technologies will be at a strategic disadvantage. Increasingly management control is about technology management. Traditionally, it has often been supposed that control systems must fit the firms strategy; that strategy is developed through a formal and rational process, and last but not least that the firms management systems follow from the underlying rationales of strategy. Increasingly, however, the situation is that new technologies influence significantly how firms enact their strategies. In parallel, more and more technologies for management control are offered to corporate leaders who therefore need tools and ways to think about corporate information management. The overall course objective is to familiarize class participants with this task. This elective builds on the core course in financial management. This course enables you to approach and manage information systems from an information management & control perspective both in a practice setting and in the context of projects. In contrast to the core course that focused mostly on techniques and calculations, this course focuses on the nature of management control problems that arise in organizations that rely on information systems. Most organizations do. Learning Outcomes Most of you will soon be in positions where you will be directly responsible for line or staff. You will either have to manage others within a certain management control system; you will become a key decision taker or even designer of such systems or you will be the sufferer of management control systems that dont report on the things you want to know about. Either way, the materials covered in this course will be highly relevant to your immediate job situations as they will contribute to your understanding of the role and impact of management control systems on the ways how organizations manage (lecture 1-4 in particular) and vice versa help you impact on the design of management control systems and thus what it is that your organization manages (lecture 5-8 in particular). Essential Purchase / Reading Materials The course employs both a course compilation and a subset of chapters from: Simons, R. (2000) Performance measurement and control systems for implementing strategy, Prentice Hall. 1 confined copy of book held at library counter JJPM (sim3 books in Short Loan CollectionJJPM (sim)

he majority of the other text materials have been sourced predominantly from management journals such as Harvard Business Review and the Sloan Management Review. Participants can expect that most readings necessarily will be referred to explicitly in class. However, the main purpose of the readings in class is not to regurgitate the literature but to use it to develop frameworks for analysis. The readings per lecture including case studies have been limited to approximately 65 pages, and it is expected that every participant has familiarized themselves with the literature in advance of the lecture and read the case studies in detail. Participants are not expected to have read in advance of the lectures the papers that in the following pages appear underneath the heading to be presented in classes. Participants may but are not expected to read literature listed as supplementary readings. In general primary readings, on the following pages, have been listed in the order by which they will be used in the lectures. As a word of caution on case studies; do not approach a case as you would a book chapter or magazine article. You are a participant, not an observer. Therefore you must put yourself in the shoes of the decision maker and aim to understand the nature of the problem and not only the outlines of a solution. The main purpose of the case study is to allow the class to develop and exercise frameworks that allows you to evaluate various situations on their own merits. In other words, do not automatically assume a case represents a good or a bad system. It is expected that the frameworks we develop will draw broadly on the disciplines from your other core courses explicitly the inclusion of insights from organization, strategy and finance is encouraged in addition to your base knowledge of financial management. Below follows a very brief introduction to each of the lectures including the specific learning objectives for each of the eight lectures. Assessment The final grade will be based on the submission of two case studies during the course and the successful completion of a final exam. Office Hours Niels Dechow, Room 30.027. For appointment please email: niels.dechow@sbs.ox.ac.uk Quality Council Meetings will be organized each fortnight, if desired. Details to be discussed at the beginning of the course.

Valuation of IT Investments
Introduction Worldwide corporations spend trillions of pounds on new IT investments. Rarely are these investments made subject to formal valuation. This lecture focuses on the problems and challenges in applying financial valuation tools to modern information technology. The case study illustrates the struggle a manufacturing firm experiences in assessing the costs and benefits of a major IT investment. Learning Objectives i.
II.

iii. iv.

To understand and/or develop: Complementarily as main (economic) contribution of IT investments Characteristics of methodologies and their use for valuation of IT investments Limitations of valuation tools to capture and represent business value propositions

v.

Comprehensive valuation approach to IT investments.

Primary Readings for Lecture Simons, R. (2000) Designing asset allocation systems. Ch. 7 in Performance measurement & control systems for implementing strategy. Prentice Hall. pp. 137-158
I. II.

Confined copy of book held at library counterJJPM (sim) Books in Short Loan CollectionJJPM (sim)

The Indian information and technology industry has played a key role in putting India on the global map. Thanks to the success of the IT industry, India is now a power to reckon with. According to the National Association of Software and Service Companies (NASSCOM), the apex body for software services in India, the revenue of the information technology sector has grown from 1.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated 5.5 per cent in FY 2007-08. The net value added by this sector, to the economy, is estimated to be 3.3 to 3.9 per cent for FY 2007-08. The phenomenal growth of the Indian IT Software & Services and ITES-BPO sector has had a perceptible multiplier effect on the Indian economy as a whole. In addition to the direct positive impact on national income, the sector has grown to become the biggest employment generator, and has spawned the mushrooming of several ancillary industries such as transportation, real estate and catering, and has created a rising class of youthful consumers with high disposable incomes. This, in turn, has triggered a rise in direct-tax collections and propelled an increase in consumer spending. The total IT Software and Services employment is expected to reach the 2- million mark in 2007-08 (excluding employment in the hardware sector), as against 1.63 million in 2006-07, a growth of 22.7 per cent year-on-year. This represents a net addition of 375,000 professionals to the industry employee base, this year. The indirect employment attributed by the sector is estimated to about 8 million in year 2007-08. This translates to the creation of about 10 million job opportunities attributed to the growth of this sector. The Indian IT industry is recognised the world over for its quality. Today, India leads the world in terms of the number of quality certifications achieved by centres in any single country. As of December 2007, over 498 India-based centres (both Indian firms as well as MNC-owned captives) had acquired quality certifications with 85 companies certified at Software Engineering Institute (SEI), Carnegie Mellon Capability Maturity Model (CMM) Level 5 higher than any other country. India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services. The government expects the exports turnover to touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum, from the earlier few million dollars worth exports in early 1990s. As per NASSCOM's latest findings:

i. ii. iii. iv.

v.

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Indian IT-BPO sector grew by 33 per cent in FY 2007-08 to reach US$ 64 billion in aggregate revenue (including hardware). Of this, the software and services segment accounted for US$ 52 billion, growing by 28 per cent over FY 2006-07. Software and services exports (including exports of IT services, BPO, engineering services and R&D and software products) reached US$ 40.4 billion, contributing nearly 63 per cent to the overall IT-BPO revenue aggregate. IT-BPO exports (including hardware exports) grew by 28 per cent from US$ 31.8 billion in FY 2006-07 to US$ 40.9 billion in FY 2007-08. While the US (61 per cent) and the UK (18 per cent) remained the largest IT-BPO export markets in FY 2006-07, the industry is now making a mark in other countries as well - with exports to Continental Europe in particular, growing at a compound annual growth rate (CAGR) of more than 55 per cent over FY 2004-07. Domestic IT market (including hardware) reached US$ 23.1 billion in FY 2007-08 as against US$ 16.2 billion in FY 2006-07, a growth of 43 per cent. Hardware remained the largest segment of the domestic market with a growth rate of 44 per cent in FY 2007-08. Software and services spending grew by over 41 per cent during the year. The industry's vertical market exposure was well diversified across several mature and emerging sectors. Banking, financial services and insurance (BFSI) remained the largest vertical market for Indian IT-BPO exports, followed by high-technology and telecom. These sectors together accounted for nearly 60 per cent of the Indian IT-BPO exports in FY 2006-07. Manufacturing, retail, media, healthcare, airlines and transportation, and utilities were the other key segments. Moreover, according to a study by Springboard Research, the Indian IT services market is estimated to remain the fastest growing in the Asia-Pacific region with a CAGR of 18.6 per cent.

Outsourcing A research by Gartner forecasts India as the undisputed leader in the outsourcing space in the year 2008. The Outsourcing Service Provider Performance Study 2007, undertaken by sourcing advisory firm Equa Terra, reported that the majority of UK businesses offshore all or parts of their IT functions to India and plan to continue with this strategy as India continued to be the favourite outsourcing destination for businesses in UK in terms of satisfaction. India's most prized resource is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the US. It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. The enormous base of skilled manpower is a major draw for global customers. According to a Gartner study, India remains the undisputed leader in offshore services and tops the list of 30 countries on criteria's such as language, government support, labour pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property, security and privacy. Twenty-nine India-based companies including Tata Consultancy Services, HCL Technologies, Genpact, and WNS Global Services amongst others, have been listed among the best 100 IT service providers in a survey carried out with a view to assist business heads of major outsourcers identify reliable, innovative and tech-savvy partners.

Last year, India generated close to US$ 40 billion in proceeds from IT and IT-based services. Almost 80 per cent of these revenues were generated by exports. Global offshoring has a market volume of roughly US$ 70 billion, with Indias share in the global market totalling 45 per cent.

Multinationals in India
Information technology has been a promising sector for India, generating revenues both for the domestic as well as the global market. India's IT potential and markets with very high returns have attracted multinationals to grab a share of the pie and cash in on the IT boom. Also, the increase in purchasing power and the rapid business expansion of the small and medium enterprises (SMEs) holds promise for global IT giants, who look at a 100 per cent year-on-year growth in their small and medium businesses (SMBs) market in India. Also, according to a study by consulting firm Zinnov, India's IT spending is likely to grow between 17.6-24 per cent by 2010 from the current IT spending totalling US$ 17 billion. i. ii. iii. iv. v. Intel Capital, chipmaker Intel's global investment arm, has announced an investment of US$ 23 million in three Indian companies- One97 Communications, IndiaMART.com and Global Talent Track. Moreover, Intel is looking to invest more than US$ 1 billion in India over the next three years in partnership with Indian and foreign hardware firms to prepare light-weight personal computers. Cisco posted over 100 per cent year-on-year growth in its SME business in India in FY 2007-08. Oracle is expecting over 100 per cent growth in India for its CRM business on the back of increased technology awareness and need for cost-effective customer servicing. Yahoo! Inc and Tata Sons' subsidiary firm, Computational Research Laboratories (CRL), have entered into a joint agreement to make available-EKA, a supercomputer, for cloud computing research in India. Hewlett Packard (HP), the worlds biggest maker of personal computers, recently stated that a total of eight entries in the list of top 500 supercomputers are from India. EKA is ranked 13th. Dell, which not only manufactures and sells hardware in India but also has a service and support arm, had ended the year 2007 with revenues of US$ 638.96 million and expects to touch the billion-dollar mark next year. World's leading chip designer firm, ARM, is expanding its India design centre to make it the largest outside Britain.

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US-based, US$ 1-billion dollar-chip maker, Microchip Technology, will invest US$ 65 million in its India development centre over the next five years. Domestic Markets India's domestic market has also become a force to reckon with, as the existing IT infrastructure evolves both in terms of technology and depth of penetration. Global as well as domestic IT companies like IBM, Accenture, HP, TCS, HCL and Wipro have witnessed a remarkable growth in their business. The domestic information technology business has become far too attractive to ignore. India Inc's demand for IT services and products has bolstered growth in the domestic sector with deal sizes going up remarkably and contracts worth US$ 50 million-US$ 100 million up for grabs.

Such growth in the software and services sector has been achieved because of spectacular growths in some segments. For instance, 680,000 notebooks were sold in the first half of 2007-08, registering an increase of 59 per cent. This year too laptop sales are likely to increase. According to research firm Gartner, India's personal computer (PC) market is likely to grow by 13.7 per cent to 11.1 million units in 2009, aided by a surge in demand for laptops. The laptop market is expected to grow by 37 per cent in 2009 to 3.69 million units and constitute a third of the total PC market. In the next couple of years, global market intelligence and consulting firm, IDC, sees a higher local demand driven by growth of broadband, expansion of Software-as-a-Service (SaaS), service oriented architecture, virtualisation as also networking projects. The net margins in the domestic market are at about 9-11 per cent which has improved considerably in recent years. Of late IT service providers, MNCs and domestic firms have developed strategies exclusively for the domestic market according to a research report by Gartner. Further, India's homegrown IT mammoths are looking at buying companies abroad. In one of the biggest acquisitions ever, HCL Technologies has acquired UK-based Axon with a US$ 811-million bid at 650 p per share. Indian companies also continue to bag prestigious deals. Recently, Tata Consultancy Services has won a multi-year contract from Ducati to deploy ERP solutions for the Italian super bike major in Europe. In spite of the global meltdown, Infosys posted better-thanexpected earnings growth for the December quarter aided by a weaker rupee and improved operational efficiencies. Infosys reported a 33.3 per cent rise in net profits at almost US$ 335.40 million for the December quarter of 2008-09, compared with about US$ 251.60 million in the year-ago quarter. Revenues rose 35.5 per cent to almost US$ 1.18 billion from US$ 870.23 million. However, certain cases such as Satyam have rocked Indias IT sector both in the country and abroad for poor corporate governance and financial fraud. Satyam case was put on track by taking immediate crisis control measures by the government such as appointing a new board have helped put Satyam back on track. In fact, a large number of Satyams clients such as GE and Malaysian Airlines insist on continuing business with the company despite the fraud. In fact, the Commerce Minister, Mr Kamal Nath reaffirms his faith in Indian corporates saying that Satyam is just a one-off case and can hardly be cited as a general feature of the Indian IT industry. Rural Penetration According to a new report of the Internet and Mobile Association of India (IAMAI) rural India has 3.3 million active internet users. Since rural India was mapped for the first time, the year-on-year growth of internet users in rural India could not be estimated. The research also notes there are 5.5 million people who claim to have used Internet at some point in time. Various government and private sector initiatives to connect rural India, especially the government-led National e-Governance Programme, have played an important role in increasing internet penetration in rural India. Growth The Indian information technology sector continues to be one of the sunshine sectors of the Indian economy showing rapid growth and promise.

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According to NASSCOM, the Indian IT-BPO sector is aiming to reach a target of US$ 60 billion in exports and US$ 73 billion-US$ 75 billion in overall software and services revenues by 2010. With small and mid-sized businesses driven by the increased use of technology India's information and communication technology market is estimated to grow 20.3 per cent annually to reach US$ 24.3 billion by 2011. According to the global infotech analyst, International Data Corporation, the Indian IT and ITeS market is estimated to grow at the rate of over 16 per cent to become a US$ 132 billion industry. Significantly, the domestic market alone is expected to become over US$ 50 billion, with a CAGR of about 18.4 per cent. Simultaneously, the IT and ITeS exports are estimated to more than double to US$ 78.62 billion by 2012.

Information Technology Management Goals

Goal 1 - Become a mission partner

Increase and promote information technology interaction with mission. Serve mission information users as customers. Facilitate process improvement.

Goal 2 - Provide services that satisfy customer information needs Build architecture and performance infrastructure. Modernize and integrate defense information infrastructure. Upgrade technology base. Improve information technology management tools.

Goal 3 - Reform information technology management processes to increase efficiency and mission contribution Institutionalize ITMRA provisions. Institute fundamental information technology management reform efforts. Upgrade information technology work force.

Goal 4 - Ensure vital information resources are secure and protected Build information assurance framework. Build information assurance architecture and support services. Improve acquisition processes and regulations. Assess information assurance posture of operational systems.

Information Technology Management Goals Accomplishments Goal 1 - Become a mission partner: The Department established the CIO Council as its executive management body for information technology. The Department is strengthening the CIO Council by creating a

working level council to develop draft policies and veteran issues for resolution. This tiered structure will enable broad participation, decision making, and a stronger defense for information technology resource requirements. The Department is integrating information technology management strategic planning into the Planning, Programming, and Budgeting System (PPBS). The ITM Strategic Plan was used as a guide for information technology planning in the Departments high level planning guidance. Components have used the ITM Strategic Plan and planning process to help structure their CIO organizations. The plan is being revised to better link to the Report of the Quadrennial Defense Review, the Defense Reform Initiative, and Joint Vision 2010. Components strategic plan proposals and concepts are also being used to update the ITM Strategic Plan, making it a more effective tool for managing the Departments information technology resources. On July 25, 1997, the CIO approved the Information Technology Investment Management Insight Policy for Acquisition. The policy simplifies and streamlines the way that components inform the CIO about their major information technology acquisitions. In 1998, the CIO reviewed 20 such notifications. To further streamline the current IT acquisition policy, and institutionalize IT investment management for IT acquisitions, the CIO is developing a capability-based risk-sharing methodology that can be used to decide the level of risk the CIO may share with the component CIOs. Components are applying extraordinary efforts to meet the technical challenges related to Year 2000 compliance. The Department has assessed virtually all of its known systems and identified Year 2000 issues for corrective action. Renovation of systems is in process, and schedules have been developed for testing each system. Resources are identified and available for accomplishing these actions.

Goal 2 - Provide services that satisfy customer information needs The Department is taking several key initiatives to manage its worldwide information infrastructure as a coherent Global Networked Information Enterprise, to provide forces with affordable information dominance, anywhere and any time. These initiatives include the increased exchange of information across the enterprise through the use of enterprise data exchange tools, which facilitate the sharing of data elements among todays disparate applications. The CIO is exploring ways to reduce the total cost of ownership for software by collaborating across in an Enterprise Software Initiative. Components have decided to leverage their buying power by negotiating -wide agreements for software. They are also creating a business process for estimating software requirements, agreeing on common terms and conditions, electronic software shopping and distribution, software funding, and tracking and managing software. The Department conducted an information technology investment process pilot study for the Departments CIO using the Office of the Assistant Secretary of Defense for Health Affairs as the subject. The study concluded that the office has effective management and oversight structures that ensure extensive involvement by the functional community and the Health Affairs CIO. A key success factor is that Health Affairs has a consolidated tri-Service (Army, Navy, and Air Force) program that allows prioritization of investments across the entire Departmental enterprise. Continual program evaluation, monitoring, and problem resolution within Health Affairs result in an effective investment program that reflects the priorities of the health affairs community.

Goal 3 - Reform information technology management processes to increase efficiency and mission contribution: In July 1998, the Deputy Secretary disestablished the Major Automated Information System Review Council (MAISRC). The MAISRC wass primary body for overseeing major automated information systems (AISs) and other IT investments. Will continue to oversee major AISs and other IT investments through the IT Overarching Integrated Product Team and, when necessary, special reviews by the CIO. The focus of IT investment oversight will evolve over the next year to place greater emphasis on the planning phase, on portfolios of investments, and on evaluating performance outcomes. Section 5122 requires an integrated information technology Capital Planning and Investment Control Process. The Department uses the PPBS, in conjunction with its requirements and acquisition processes, to ensure that the correct information technology investments are selected. Over the past year, changes have been made in the PPBS to ensure full participation of the CIO in the decision making process and to strengthen the linkages of information technology programs to the missions they support. The CIO has become a member of the Defense Resource Board, thus ensuring that the CIO position is heard on all budget deliberations. Has been instrumental in the adoption of a new Information Technology Budget reporting exhibit by the Federal CIO Council and the Office of Management and Budget. The new exhibit will explicitly tie information technology systems to the mission they support and provide performance measures, as well as progress toward those measures, for major information technology systems. The CIO has made information technology management literacy a primary goal within the Department by developing Clinger-Cohen competencies that depict skill requirements and knowledge required by CIOs and information resource management personnel. The competencies have been adopted government-wide by the Federal CIO Council as desired skill requirements of senior managers. Led the government-wide effort to update the competencies in 1998. The Department continued to sponsor CIO Executive training sessions for CIOs, Deputy CIOs, and senior managers with CIO responsibilities. Four sessions were held in 1998 and four sessions are planned for 1999. In addition, during 1998 two CIO Certificate Web-based courses were established to reach a broader audience. Under the auspices of acquisition reform, a live satellite broadcast on the Clinger-Cohen Act was held in June 1998 and questions were fielded from the community regarding the new laws, regulations, and implementation guidance. A video training tape on the Clinger-Cohen Act and its implementation in the Department was also developed for use by schools and personnel.

Goal 4 - Ensures vital information resources are secure and protected: To respond to Presidential Decision Directive 63, Critical Infrastructure Protection, May 1998, and to formulate an integrated, comprehensive defense-wide critical infrastructure protection program, the Department: Assigned the CIO as the Departments Chief Infrastructure Assurance Officer. Submitted a -wide critical infrastructure protection plan to the National Coordinator in November 1998, with the goal of implementing the plan within two years. Information assurance is a critical component of the Departments operational readiness because it assures that Defense Information Infrastructure systems and networks stand ready to provide continuous and dependable service. The Department took major steps in 1998 to improve its information assurance posture:

In January 1998, the Deputy Secretary of Defense established the defense-wide Information Assurance Program to provide for the planning, coordination, integration, and oversight of the Departments information assurance activities and resources. The Department initiated a defense-wide action to baseline the information assurance and information technology skills and resources within the Department, determine future requirements, and address personnel training, certification, and retention issues. The Department instituted a positive control process to ensure that information concerning information system vulnerabilities are appropriately disseminated and countermeasures are implemented.

Top Ten List of Information Technology Management

i. ii. iii. iv. v. vi. vii. viii. ix. x. Information technology is an integral part of an organization and must be integrated within the business / strategic plan of the company. Show hoe IT contributes to the bottom line. Find senior-level champions within the organization to help carry the ball for financial and moral support of the IS/IT. Solve the business problem dont force-fit information technology (IT) to requirement. Without the proper implementation and organizational concerns analyzed up front, the information system (IS) could be a technical success but a technology transfer failure. Carefully examine the corporate culture and determine how best the deal with resistance to change. No system is any good if no one wants to use it. Invest in employee training and R&D for continued company growth. Knowledge management will be a critical success factor in those organizations that will be the leaders of their field. Feel comfortable with risk vs. return.

Dont Get Lost: Tie the Information Systems Strategy to the Strategic Mission of the Firm Many information systems (IS) projects fail. According to various studies, only about 20% to 30% of IS projects are successful from project inception through institutionalization. The technology is usually not the limiting cause. Rather, management of the technology is typically the culprit in the lack of success of an information system. How can system developers and information technology managers better ensure that an information system will not lead to failure? According to Stephen Flowers, Director of the Center for management Development at the University of Brighton, Great Britain, there are several critical failure factors associated with information systems. Organizational context:

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Fear-based culture Poor reporting structure

Management of Project i. ii. Over commitment Political pressures

Conduct of Project i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. Technology edge system Leading Complexity underestimated Technical fix sought Poor consultation Changing requirements Weak procurement Development sites spilt Project timetable slippage Inadequate testing Poor training

These three areas of organizational context, the management of the project, and the conduct of the project must be carried out properly in order for an information systems project to succeed.

CHAPTER-3 MATERIALS MANAGEMENT Introduction

It deals with purchasing and storage of materials so as to provide optimum customer service consistent with efficient operation at minimum inventory investment. Inventory in an organization is analogous to water level in a bath tub. The level increases if rate outflow is less than inflow. A perfect synchronization of rate of outflow with rate of inflow through a suitable control mechanism will ensure a minimum water level just enough to meet requirements. Inventory Syndrome. A supplier producing 4 units/week and meeting requirement of 4 customers with a consumption of 1 unit/week, delivered 4 units to each after 4 weeks. Each unit will have average inventory of 2 units 4+0. Customer A puts up a false demand of 1 additional unit as safety stock as to be safer than other units. Since the total demand in 4 weeks is no 17 against production capacity of 16, the supplier is forced to increased lead time from 4 weeks to 5 weeks. Immediately orders from other 3 customer will also be increased from 4 to 5 units making a total demand to 20 units. Each customer will then have an average inventory of 3 units 1+ 4+ 0 with the real consumption of 1 unit/week only. Customer A then to be ahead of others will place an order of 6 units making a total demand of 21 units. The supplier will therefore increase the lead time to 6 weeks forcing other three customers also to place orders for 6 units. Total demand will be 24 units. Each customer will have to keep and average inventory of 4 units, 2+4+0 with the real consumption of 1 unit/week as earlier. And so on this process continues. The inventories go on increasing without any real use. If the system of constant demand of 4 units/week would have continued, the balance of demand and supply would not have disturbed resulting into smooth functioning with a level of 2 units of average inventory. Fictitious demand, long lead times and piled-up inventories are the result of such syndrome.

Scope
A survey of the 161 Public Sector manufacturing units carried out in India during 1985 revealed the following: Total Investment = 43000 Crores Annual Output = 55000 Crores Average Inventory = 12800 Crores (Stores only) This means the inventory maintained in the form of stores inventory is approximately 3 months stock. In addition to the inventory lying in stores, a large work-in-process (WIP) inventory is also observed in an industry. It is quite normal practice to observe heaps of stock at each work station. Further, there are temporary stores and inspection points within the shops. Inventories in the form of finished goods (FG) are also not a small figure. Due to seasonal demand, incorrect forecast, improper co-ordination between Marketing and Production Planning, uncertain power supply, production leveling etc., some FG inventory may be necessary. FG inventory in various organizations however vary from few days to over 6 months, depending upon the nature of product.

Adding up inventory of Raw Materials, Maintenance Spares, Operating Supplier, WIP & FG, it is estimated that a medium size industry keeps 4-6 months stocks. Most of the companies in Japan work on zero inventory of 2-3 stocks. Agreed that the environment and work culture in India is such that the Japanese Standards of inventory cannot be met, however the level can certainly be brought down to less than a 1 month with little of planning and effort. This means that thousands of crores of rupees blocked in the form of inventories can be released for countrys developmental projects. Importance of MM In addition to the cost of materials, the inventory carrying cost should also be taken into account when considering material cost. This comprises various elements e.g. interest charges, storage and handling costs, insurance, obsolescence etc. All this amounts to at least 20% of average inventory that means total material cost will be about 70% 64+0.20 x 64-0. As a big chunk of expenditure i.e. 70% is towards materials cost, large savings will result if MM tools and techniques are used to cut down this cost-than whatever attempts are made to save on other items of expenditure like wages and salaries and overheads. It is true that most of the MM techniques are very simple to apply as compared to techniques of reducing wages and overheads. Linkage of Production System with Inventory Materials planning are closely related with the type of production system in a manufacturing organization. The conventional systems and their linkage with inventory are briefly discussed in this chapter. Line Production System Line production system is the specialized manufacture of identical articles on which the equipment is fully engaged. Line production system normally associated with large quantities and with a high rate of demand. While in the job and lot type of manufacturing the production capacity normally exceeds the rate of demand, line production system is justified only when it capacity can be sustained by the market. Here, full advantage should be taken of repetitive operations in the design of production auxiliary aids, such as special tools, fixtures, positioners, feeders and materials handling system, inspection devices, and weighing and packing equipment. Lot Production System Lot production system is the manufacture of a number of identical articles, either to meet a specific order or to satisfy continuous demand. When production of the lot is terminated, the plant and equipment are available for the production of similar or other products. As in job shop production, policies regarding tooling, fixtures, and other aids are dependent on the quantities involved. If the order is to be executed only once, there will be less justification for providing elaborate production aids than when the order is to be repeated. Job Shop Production System This is manufacture of products to meet specific customer requirements of special orders. The quantity involved is small, usually one off or several off, and is normally concerned with special project, models, prototypes, special machinery or equipment to perform specialized and specific tasks, components or assemblies to provide replacement for parts in existing machinery, etc.

Definition Information technology has been defined by the Information Technology Association of America, or the ITAA as being the study, design, development, implementation support and/or management of any computer based information systems. This relates particularly to software applications and computer hardware. Information technology deals with using electronic computers and software to convert, store, protect, process, retrieve with security or transmit any information. What began many years ago as a term that many had no awareness of to a term that has skyrocketed to include several aspects of computing and technology. IT is a wide based term and encompasses many areas. Professionals in information technology may perform a wide variety of tasks that range from installing computer applications to designing widely complex computer networks and information databases. Everything from data management, networking, engineering computer hardware, software design, database design and management and administration of systems is included in the term of information technology. When covering the aspects of IT as a whole, the use of computers and information are typically associated. The history of IT goes back several years. In order to perform the functions associated with the field of technology the modern field will use computers, servers, database management systems and cryptography. It was not very long ago that the field of IT only consisted of a single computer operator who stored data on a magnetic tape and then placed it in storage. Times have changed drastically in the field of technology from its inception several years ago. The field today typically includes a Chief Information Officer and several individuals who work together to achieve their goals. Years ago there was simply a single operator who performed all the tasks related to this form of technology. Today the job outlook for people interested in this field is very good. With data security and server specialists among the highest paid in the field, those with the needed skills and a keen interest in IT stand to earn a substantial annual income. With the increasing concern for data storage and management, along with the security issues that most companies and corporations are facing, a career in IT is an excellent choice for those who possess mathematical and strategic planning skills. Since 1961 the Information Technology Association of America has been working to enhance the interests of US technology and electronics industries. This association provides leadership training in areas relating to business development, public policy, market forecasting and standards of development to a large number of corporations. The ITAA provides a grassroots approach to global networking for companies, market and government from the smallest local level to a global audience. It currently represents more than 16,000 information technological related companies throughout the world. Based in Washington, DC, the Information Technology Association of American is the only organization of its kind that helps to unite local, state, national and global businesses in the area of technology. While technology today encompasses a wide range of individual focuses, it is becoming increasing clear that the IT field of the future will include many more topics and more demand than ever before. For those interested in becoming part of this rapidly growing field the time is now. Getting in on new developments could prove to be a very exciting and lucrative choice.

Information Technology Advantages

Information Technology Advantages, LLC (IT Advantages), is a nationwide provider of information technology professionals serving the healthcare industry. We focus exclusively on meeting the specialized needs of todays healthcare technology leaders. Our most valuable asset, and one of the keys to our success, is the quality of our experienced professional staff. All of our consultants have exceptional operational and technical experience specific to the healthcare environment. Each resource possesses special knowledge, and a mastery of particular skills. This knowledge and skill is used to assist healthcare organizations achieve their clinical and financial objectives through the efficient and effective use of technology. IT Advantages is a valued resource to our clients. Our success is a result of total responsiveness to the client, commitment to service and quality, and providing timely, cost efficient solutions. We take pride in assisting our clients to achieve their technology and business goals. In turn, our clients recognize IT Advantages as a strategic business partner. The Business Advantages of Information Technology IT delivers many advantages to the organization that manages it effectively. From cost savings and improved productivity to greater business intelligence and decision-making capabilities, every organization can benefit from IT. However, these days, business is putting great pressure on IT to cut costs and deliver even more business value. Here are just a few of the reports in our library that can help IT executives reduce IT spending and improve business value. Information Technology Over the last decade, India has developed into a major and credible information technology (IT) outsourcing centre. The IT sector is one of the fastest growing segments of Indian industry, growing from Rs. 13,200 crore in 1992-93 to Rs. 80,884 crore in 2001-02. Sixty per cent (Rs. 48,134 crore in 2001-02) is accounted for by software and the remaining 40 per cent (Rs. 32,750 crore) by hardware. The sector has performed exceedingly well on the export front. Exports grew from Rs. 1,454 crore in 1991-92 to Rs. 42,371 crore in 2001-02. Again software comprises the bulk of the exports. Software exports of Rs. 36,500 crore accounts for 86 per cent of total IT exports. Hardware exports of Rs. 5,871 crore account for only 14 per cent. The major achievements of the sector include the development and tremendous success of the software industry, large-scale. Computerization and Internet usage, IT-based automation in various industries, development of supercomputer technology etc. The growth of the sector has led to tremendous pay-offs in terms of wealth creation and generation of high quality employment. IT is an area where the country has a competitive edge and can establish global dominance. Advancements in IT have a profound impact on the economy and the quality of human life. The increasing convergence of technologies and content has created tremendous opportunities as well as challenges for both developed and developing countries. The Government, while recognizing IT as a thrust area for growth, has taken a number of initiatives to promote it (Box 7.4.1). A major effort to promote the sector is proposed in the Tenth Plan. The main objectives are: ensuring the sustained growth of software and IT-enabled services and increase Indias share in the global IT market as well as expanding the domestic market; putting in place a policy framework to make India a major force in the hardware manufacturing sector; greater use of IT in governance; bridging the digital divide; promoting the development of software in Indian languages; and improving the quality of manpower, skills and research and development in the sector.

Software Development and Marketing

The total global software and IT services market is estimated to be about $ 1.2 trillion of which Indias share is 2 per cent. The Indian software industry is under threat from emerging competitors like China, the Philippines, countries of the Commonwealth of Independent States (CIS), South Korea etc. Strategies would, therefore, have to be re-oriented for sustained growth. The domestic Market also needs to be developed. The experience of countries like China which have a very strong and vibrant domestic market needs to be studied when developing our long term strategy. Major initiatives that require immediate action in the software sector are
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The software industry needs to move up the value chain by developing high value products through R&D. Software firms need to tie up with the extensive R&D network that exist in the country. To ensure long-term sustained domestic growth and exports, the software industry needs to move from being software solutions providers to manufacturers of packaged products. Continuous improvement in productivity will hold the key to maintaining our competitive edge in the global market. Three vital inputs are need for this: sustained improvement in the quality of products and services, availability of high quality manpower and strong R&D support. For building brand equity and positioning the India brand abroad, large investments in marketing and brand building would be required. The United States would continue to receive priority attention for software exports. Other elements of the marketing strategy should be strengthening marketing channels globally, expanding the focus to emerging markets in Europe, the United Kingdom, Asia- Pacific, Japan etc., and entering into agreements with end-user countries for executing large projects. Industry associations like the National Association of Software and Service Companies (NASSCOM), Manufacturers Association of Information technology (MAIT), Electronics and Computer Software Exports Promotion Council (ESC) etc., need to assist the small and medium enterprises (SMEs) in their export efforts through effective networking and one-online meetings with potential customers in developed countries. Priority attention needs to be given to the development and promotion of software in Indian languages and meeting local requirements in order to expand the domestic market.

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Human Resource Development

In order to achieve sustained growth in the IT sector and maintain Indias competitive edge in the field, high quality professionals in adequate numbers are required. According to a McKinseyNASSCOM study, India would require 2.2 million IT professionals by 2008 1.1 million in the hardcore IT sector and an equal number for IT-enabled services. The country needs to ensure the right mix of technical, business and functional skills in the workforce to meet the needs of individual business segments and customer markets. Educational and training institutions need to match the demands of the industry. The major initiatives required in this regard are

I.

Continuous up gradation of standards at the school level with emphasis on physics, mathematics and English Make microelectronics and biology the new focus areas in tertiary education. Updating the syllabus of computer engineering, electronics and IT in various technical institutions in line with the demands of the industry. The curriculum in other branches of engineering should also be reoriented and broad based to include IT subjects Postgraduate engineering education and innovative research in IT are imperative in order to maintain quality and facing new challenges in this dynamic sector Ensuring a continuous upgrading of teaching faculties and introduction of teaching aids like computers, access to Internet, videos etc Augmenting and upgrading facilities in existing RECs and engineering colleges under deemed universities to Indian Institute of Technology (IIT) level so that the country has at least 100 such institutions by the end of the Tenth Plan to meet the requirements of quality manpower Recognizing, without further delay, the C- level course of the Department of Electronics Accredited Computer Courses (DOEACC) as equivalent to M.Tech in computer engineering for all purposes

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Legal and Regulatory Issues The Information Technology (IT) Act, 2000 provides the basic regulatory framework for the domestic IT industry. The Communication Convergence Bill (CCB), 2000, which has been introduced in Parliament, needs to be enacted and operationalised at the earliest to provide the required institutional framework for ensuring convergence of services i.e. telecom, IT and media. However, several related issues need to be sorted out effectively to ensure optimum growth of the IT sector. Some of these are: i. ii. The issue of software piracy needs to be tackled through suitable legal and other provisions of the IT Act. Growth of e-commerce would also depend to a great extent on effective IT security systems for which necessary technological and legal provisions need to be put in place and strengthened constantly. The IT Act does not clarify all the issues regarding taxation of electronic transactions, especially indirect taxation for goods/services delivered electronically. The Act is silent on the issue of protection of intellectual property rights (IPR). The issue of controlling cyber crime has not been comprehensively addressed by the IT Act since the offences defined in the Act are not exhaustive. Law enforcing agencies are not fully equipped and trained to deal with cyber crime.

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Safeguards to protect the privacy of personal and business data collected over the Internet need to be put in place.

Financial Issues The domestic hardware industry in general, and electronic components manufacturing units in particular, are charged high interest rates when borrowing money. Fast obsolescence, weak R&D base, poor infrastructure etc., have resulted in a situation where there have been no new investments in the hardware sector during the Ninth Plan. It has, on the other hand, resulted in the closure of some existing units. The Tenth Plan Working Group on IT has recommended the creation of an Electronic Component Development Fund with a corpus of about Rs. 100 crore. An appropriate quantum of capital, depending on the criticality of the components, could be made available out of this Fund at a subsidized rate of interest to credible entrepreneurs. Advanced IT skills in the Indian software industry is limited to a few leading companies which contribute about 65 per cent to the total software exports. The SMEs, which are larger in number, contribute about 35 per cent to software exports. Unless the SMEs are promoted through suitable policies, including fiscal incentives, it may be difficult to achieve the Tenth Plan target of $ 50 billion software exports. Some measures that need to be taken to address financial needs of the IT industry are:
I.

Developing confidence among financial institutions about the potential for the growth of the IT sector Evolving special norms to finance operations to augment bandwidth by considering it a tangible asset for collateral purposes Evolve norms to finance the working capital needs of the IT software sector by considering the intellectual brain-ware also a tangible asset for collateral purposes.

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Convergence The unprecedented growth of innovative services and technologies are challenging the demarcation of various services, service providers, users and government regulations in the communication and information technology industry. The success of the convergence regime would lie in ensuring a seamless transition to the new services and information delivery systems. The single biggest area of convergence could be the integration of the Internet with the broadcast sector. The Communication Convergence Bill, envisages a unified regulatory regime to address the convergence of telecommunications, data communications, Internet, satellite and terrestrial broadcasting, cable television, audio broadcasting, software and content creation. E-governance The delivery of government services has become very inefficient because of too much discretion at every level, lack of transparency and cumbersome record management. E-governance denotes the application of IT to government Processes in order to bring about Simple, Moral, Accountable, Responsive and Transparent (SMART) governance. Though the central and several state governments have taken some initiatives in governance during the Ninth Plan, these efforts have yet to take the shape of a systematic national program. Actions and programs have been driven

primarily by individual initiatives rather than institutional thrusts. Different levels of development, computerization and political will necessitate the adoption of some standardized, uniform pattern in order to avoid the emergence of a digital divide. So far, the program of e-governance has largely been restricted to the efforts of the National Informatics Centre (NIC) and a few individual organizations. The emphasis has been on providing connectivity, networking, technology up gradation, selective delivery systems for information and services and a package of software solutions. It is now necessary to look seriously at the reengineering of procedures and rules which form the core of any effective program of egovernance. This, perhaps, is the most difficult part of the entire exercise and requires priority attention at all levels. Keeping all this in view, the master plan of e-governance in the Tenth Plan has to be guided by the following principles:
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A clearly focused vision of the objective of introducing e-governance The range and standards of delivery of information and services to the people must be defined, with time frames within which they are to be attained. Any plan or scheme for e-governance should be sustainable and should not be a passing fad. Standardization of technologies without any delay. Otherwise, the ensuing confusion will negate the advantages of use of IT Areas of public and private funding should be clearly spelt out. State-specific plans and schemes must be drawn up, keeping in mind the situation different states. in

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All schemes must be interactive. otherwise they will only be labor-saving devices for government functionaries. Government to government (G2G), government to citizen (G2C) and government to business (G2B) modalities have to be developed. E-governance also covers local government as well as private corporate bodies, For e-governance to be effective, it is necessary to draw up the architecture of the whole system.

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Information Technology Enabled Services

The Internet and other advances in IT have ushered India into an era where various services can now be delivered remotely. Time and distance barriers have been dismantled as software companies provide customer interaction services, help desks, medical transcription, translation, localization services, data digitization, legal databases, data processing, back office operations, digital content development, remote network management and specialized knowledge services to both domestic and foreign customers. IT-enabled services or remote processing services are today being considered a major growth market for the Indian software and services industry and are expected to generate significant employment opportunities in the future. According to an estimate, by 2008, IT-enabled services activities globally will be to the tune of $ 50 billion. The two most promising segments in IT-enabled services are customer interaction services, including call centers and content development and animation. India is a preferred outsourcing destination and enjoys the confidence of

global corporations because it offers innovations as well as competitiveness in terms of cost and quality. This has been made possible due to some favorable factors.
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The availability of abundant talent Software exports to over 165 countries. The presence of a mature IT industry with world-class systems India accounts for 69 of the 122 IT companies in the world having the prestigious CMM 4 and 5 level quality certification. India will soon have the highest number of ISO certified companies in the world. IT-enabled services hubs such as Ireland and Singapore are increasingly backending their operations in India, since skilled professionals are becoming a scarce resource in these countries. The telecom infrastructure is becoming competitive in India. With the active support of the Government, India is emerging as a preferred global hub. India offers favorable time zone differences and is able to provide round-the clock services. India has state-of-the-art technologies for providing total solutions to outsource turn key projects.

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The Tenth Plan Working Group on IT has projected that IT-enabled services would generate revenues of Rs. 81,000 crore and provide employment for 11,00,000 people in India in the next eight years. The current status and growth potential for remote processing services are: i. ii. iii. The revenues of IT-enabled services jumped from Rs. 2,400 crore in 1999-2000 to Rs. 4,100 crore in 2000-01. This segment employed 70,000 people and accounted for 10.6 per cent of the total IT software revenues in 2000-01. In 2001-02, the sector is expected to show a high growth of 54 per cent, well above the industry average. Revenues during the year for IT-enabled services are expected to touch Rs. 6,300 crore. A large number of players are already operating in this market and this includes key multinational corporations that have set up their call centers to cater to the requirements of both the overseas and domestic markets. Other IT-enabled services activities that have witnessed a rise over the last two years include medical transcription, and back-end processing operations. The offshore economics of IT-enabled services is as good as those of IT services. The revenue per employee for many areas of IT-enabled services are comparable to those of other IT services.

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Opportunities in major segments of IT enabled services The spectrum of IT-enabled services is wide. Some of the popular services with substantial wealth and employment generating potential are: Call Centers/Customer Interaction Services These services rely heavily on state-of the-art communications and information technologies. The centre is used for a number of functions like marketing, selling, information dispensing, advice, technical support and ecommerce. There are more than 100,000 call centers worldwide and this number is expected to grow to 300,000 by the end of 2002, resulting in employment for approximately 18 million people. By 2003, around $ 60 billion is expected to be spent on call centre services. Business Process Outsourcing (BPO) / Back Office Operations The potential for business process outsourcing (BPO) in India is projected to grow from the present level of $1.49 billion in 2001-02 to $ 21 billion by 2008. India can tap this potential through aggressive marketing, strengthening IT infrastructure and by creating specialized training facilities. Banks and airlines require large-scale data processing for their management and decision-making. Such organizations, with extensive data turnover and customer interface, send raw data over high speed communication links to remote locations for data entry, processing and necessary reconciliation etc., enabling them to save costs and resources. Such centers are basically the offshore extensions of existing information and back-office operations. There has been a growing trend to outsource these services to major IT-enabled service providers. India stands to gain from such a trend, as the Indian IT industry has been able to make a mark in this field. It also has access to a huge pool of skilled as well as semi-skilled professionals and offers relative cost advantage. Insurance Claims Processing Large insurance companies can get the claims of their clients processed anywhere, as long as a large number of graduates proficient in English, a few doctors and a few accountants are available. Apart from processing, a large amount of logistic support is also required. The guidelines to the process are well established and hence can be easily performed at remote locations. To save costs, large insurance companies in the United States are now outsourcing a lot of such work, which can prove to be another good opportunity for India to tap. Medical Transcription Medical transcription is a time and cost saving process for transcribing medical records dictated by doctors and other healthcare professionals. In countries like the United States, doctors time is at a premium and they simply record their findings on a Dictaphone. The recordings are then sent through datacom lines to overseas companies, which transcribe these recordings into reports and send them back electronically. Turnaround time is often as low as two hours and, therefore, this process is often better than what the hospital may have achieved if it had done all of it in-house. Legal Databases Many legal firms in the United States and other developed countries have started to outsource their database work to organizations having a large, cost-competitive, English-speaking workforce of trained lawyers. The job involves creating a database of the firms existing records, indexing on the

basis of various useful and commonly understood criterion, keeping track of new documents being created and incorporating them into database as per well established parameters. Lawyers can then simply use their computers to draw up a history of similar cases and draw a clear plan of action. Digital Content Development Digital content development is emerging as one of the fastest growing service segments in the global IT-enabled services industry. It caters to the needs of website management, production of content for new media such as CD/DVD and products of convergent technologies such as Internet enabled television. It offers a large emerging potential as more and more students, professionals, individuals and offices realize the need to have easy access to information that can also be suitably fused with other media. Online Education The online education market is booming the world over. The global online education and elearning market is projected at $ 11.4 billion in 2003. More than 1,600 companies, including nearly half the Fortune 500 firms, have built corporate universities. Nearly all of them offer some classes online primarily through the Web, via video-conferencing, CD-ROMs and other technologies. The online education market in India is showing significant growth potential and the sector is expected to be a significant revenue earner for the industry. Data Digitization /GIS Digitization is a labor-intensive process by which physical or manual records such as text, images, video and audio are converted into digital forms. Data digitization services offer a very good opportunity for India, due to the relatively lower costs and the technical skills available. GIS is a collection of tools and methods that are used in a digital environment for the study of spatial information. IT enabled services in GIS offer business opportunities from Europe and the United States. Many multinational companies have set up centers providing GIS services in India. Payroll / HR Services HR services are another area that has immense potential in the field of IT-enabled services. HR service components include recruitment screening, administration and relocation services, payroll processing, compensation administration, benefit planning, and administration. Web Services Internet and the wide use of the Web has accelerated the growth of remote services and created opportunities of its own. Some of the Web services include e-mail management, Internet security, web page designing and updating, managing of Internet commerce, exchange of data, payment and clearance, electronic data interchange, supply chain management and Internet data centers etc. Action Plan for the Promotion of IT Enabled Services Since the Indian IT industry has matured enough, the IT-enabled services are expected to grow through private initiatives in the Tenth Plan. The Government has already provided income tax exemption to most of the IT-enabled services.

Further initiatives that need to be taken for making India a sustainable hub for these services include: i. ii. Support from local authorities and state governments for IT-enabled services units in order to ensure ease of operations and start-up assistance. Setting up of training infrastructure for IT enabled services and the involvement of Industrial Training Institutes (ITIs) and Polytechnics for call centre management and degree-level courses for the industry. Flexibility to call centres to merge domestic and international business in the same facility Creation of an India Brand marketing fund for promoting India as a preferred destination for the IT-enabled services sector Special incentives to promote entrepreneurship and tele-working for women in the ITenabled service sector

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The Path Ahead i. ii. iii. Encourage global hardware majors to set up their manufacturing units in India. A comprehensive rationalization of tariff structure to cope with the zero duty regime on finished products that will come into place after 2005. Formulate a national hardware development policy by December 2002 by including relevant recommendations of the second and third reports of the National Task Force on IT and Software Development. Encourage the setting up STPs by the private sector. The software industry needs to move up in the value chain by developing high value products through regular R&D.

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